Consumer bankruptcy consists of the cancellation or reduction of obligations of a natural person who does not conduct business. It is a consequence of unproductive insolvency. Polish consumers can benefit from consumer bankruptcy since 2009 when it was introduced into the bankruptcy and reorganization law in our country.
In 2016, only to the 9th Commercial Department for Bankruptcy and Repair of the District Court of Lublin Wschód with its registered office in Świdnik received over half a thousand applications for the declaration of consumer bankruptcy. This year is almost 400, and by the end of the year, there are a few months left.
Who can declare consumer bankruptcy?
Many of us may think that consumer bankruptcy is very easy to announce and only the debtor’s application is enough. However, in reality, it is necessary to meet certain requirements that can not be met by any debtor.
The so-called payment morality of the debtor is the most important when submitting the application for consumer bankruptcy and its publication by the court. The term refers to the manner in which the debt is created. If someone intentionally or through negligence led to his insolvency, then he will not be able to count on consumer bankruptcy. Likewise, the case is when the over-indebtedness occurred because of borrowing to pay off earlier obligations.
What are the consequences of consumer bankruptcy?
Persons applying for consumer bankruptcy must also be aware of the fact that it has certain consequences. This does not mean that debts are magically erased and you can forget about them, which is also one of the myths about the bankruptcy of natural persons who do not run a business.
Below we present the most important consequences resulting from consumer bankruptcy. It’s worth getting acquainted with them to find out what can wait for us after it is announced.
The effects of consumer bankruptcy:
• with the moment of consumer bankruptcy the debtor loses the ability to dispose of his property – the right to manage it is only a receiver, and as a result, we can not sell her car, for example
• the debtor’s estate becomes a bankrupt estate and is intended to settle debts and cover the costs associated with bankruptcy proceedings, therefore the assets may be sold by the debtor, for example, it may be a real property
• the debtor ‘s estate also includes the debtor’s remuneration, which is subject to seizure in a specified scope
• it is necessary to provide the receiver with documents regarding property
• after bankruptcy, it is impossible for a specified period of time to refuse certain contracts increasing expenses, for example, to take an expensive subscription, to buy a car in installments
• also, legal transactions such as donation agreements, property encumbrances, sales contracts made up to one year before the filing of the bankruptcy application will be ineffective
• in the case of spouses, when the consumer bankruptcy is announced, property separation arises between them, while the joint property is part of the bankruptcy estate